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Item 4C AudioSOUTHLAKE RECOMMENDATION Declare Aqua Texas property as surplus Staff recommends that the city council declare the Aqua Texas Property as surplus. Aqua Texas Properties Background: — 2004 Settlement agreement provisions • Southlake purchased Indian Creek and Lakewood Ridge water system assets for $60,000 • Southlake pays Aqua Texas to continue providing water for five years • Environmental assessment • Southlake takes possession of the well site properties In 2004 the Southlake entered in to a settlement agreement with Aqua Texas to purchase the water systems in the Indian Creek and Lakewood Ridge subdivisions for the sum of $60,000.00. The agreement also provided that the city would pay Aqua Texas to continue operating the well sites and providing water in the 2 for a period of 5 years, after which the 2 parties would share the cost of an environmental assessment of the property and deeds would be conveyed to the city. That process is underway and the city will soon have ownership of the 2 parcels. 3 This aerial map shows the location to the well site properties. As you can see, these sites small parcels at the back corner of, and adjacent to 4 neighbors. The soda Ridge property is 7,500 square feet and the Homestead property is 2,500 square feet. M Aqua Texas Properties Property Condition: • Production capacity less than 25 -30 GPM • No viable Chlorination equipment • Municipal well production capacity should be 600 -800 GPM • Well property locations not suited for commercial water production sites The 2004 agreement states the rated production capacity of the well sites between 25 and 30 GPM for each location. Municipal wells are expected to operate in the range of 600 to 800 GPM. The disinfection equipment in not functional and the storage capacity at both site combined is less than 100,000 gallons. Because these sites are located in residential backyards, commercial use of these properties isn't appropriate. 5 Aqua Texas Properties Financial Consideration: — Estimated cost to clear property and plug wells - $20,000 — Based on adjacent land values • 4429 Soda Ridge (0.172 acre) - $14,000 • 4552 Homestead (0.074 acre) - $6,000 Recommendation: Declare Aqua Texas property as surplus and offer for sale as allowed by law It will cost about $8,000 per per site to cap and plug the wells and an additional $2,000 to remove the above ground buildings, storage and pressure tanks and fencing. Based on the 2010 taxable land value of the 4 adjacent properties to each site, they have the theoretical value of $20,000 combined. Staff recommends that the city council declare these sites as surplus property and allow them to be sold as allowed by law. A The sale of these properties links to the city's strategy map relative to the focus areas of Performance Management and Service Delivery. The specific corporate objective that is met by the sale is Improve performance of delivery and operational processes 7 61&7• 11M &li ma The City of Southlake provides municipal services that support • the highest quality of • life for our residents and businesses. We do this by delivering outstanding unrivaled quality in everything that we do. value and - • C1�the C2 Provide travel C3 Provide attractive C4 Attract and keep highest convenience and unique spaces tier businesses to drive top- C5 Promot opportunities for standards of within City and for enjoyment of a dynamic and safety and region personal interests sustainable economic partnerships and volunteer involvement security environment BI Achieve B2 Collaborate with B3 Enhance resident B4 Provide best select partners to quality of life and high quality B5 Improve performance B60ptimize " " -in -class status in all City implement service business customer sustainabil through service disciplines solutions tY g of delivery and use of operational technology processes tourism F1 Adhere to financial F2 Invest to provide and F3 Achieve fiscal management maintain high quality wellness F4 Establish an maintain eff principles and budget public assets standards internal co" L1 Ensure our L2 Enhance L3 Attract, L4 Recog people understand leadership develop and and retain a informed decisio skilled workforce making at all I in the orga The sale of these properties links to the city's strategy map relative to the focus areas of Performance Management and Service Delivery. The specific corporate objective that is met by the sale is Improve performance of delivery and operational processes 7 SOUTHLAKE If you have any questions regarding this item, contact Bob Price at 748 -8097